论文信息 - Ownership, Capital or Outsourcing: What Drives German Investment to Eastern Europe?

Ownership, Capital or Outsourcing: What Drives German Investment to Eastern Europe?

The Paper takes a first look at the host and home country effects of German foreign direct investment (FDI) in Eastern Europe based on new survey data of 1050 investment projects in Eastern Europe by 420 German multinationals during the 1990s. We find that German investors transfer a substantial amount of financial capital to Eastern Europe. Furthermore, the most dynamic and innovative segment of the German economy invests in the East which explains why single owned firms dominate as the form of control. We also find strong evidence for vertical FDI suggesting that German corporations are outsourcing a substantial share of their production to Eastern European affiliates to exploit lower wages in the East.

Dalia Marin | Andzelika Lorentowicz | Alexander Raubold

[1] R. Rajan,et al. What Do We Know About Capital Structure? Some Evidence from International Data , 1994 .

[2] T. Müller. Analyzing Modes of Foreign Entry: Greenfield Investment Versus Acquisition , 2000 .

[3] J. Markusen,et al. The Theory of Endowment, Intra-Industry, and Multinational Trade , 1996 .

[4] K. Sauvant. World Investment Report , 1999 .

[5] J. Markusen,et al. Multinational Firms and the New Trade Theory , 1995, World Scientific Studies in International Economics.

[6] Elhanan Helpman,et al. A Simple Theory of International Trade with Multinational Corporations , 1984, Journal of Political Economy.

[7] Susan M. Collins,et al. Capital Flows to Developing Economies: Implications for Saving and Investment , 1999 .

[8] S. Hymer. international operations of national firms , 1976 .

[9] J. Dunning. American Investment in British Manufacturing Industry , 1959 .

[10] The Composition of International Capital Flows: Risk Sharing Through Foreign Direct Investment , 2003 .

[11] Kenneth A. Froot. Foreign direct investment , 1993 .

[12] J. Brander,et al. Market structure and foreign trade , 1985 .

[13] B. Javorcik,et al. Equilibrium Constrained Optimization Problems , 1999 .

[14] Assaf Razin,et al. FDI Flows and Domestic Investment: Overview , 2003 .